Smart: Indonesia Palm Plantings Since Late 2005 Not In Primary Forests
30 June 2011 - 6:49PM
Dow Jones News
PT Smart (SMAR.JK), an Indonesian subsidiary of Golden Agri
Resources Ltd. (E5H.SG), said a research team has determined that
land preparation for palm oil plantation expansion in West and
Central Kalimantan provinces since November 2005 wasn't carried out
on primary forest lands, refuting some of the allegations made last
year by Greenpeace and other environmental groups.
The environmental activists also accused the company of
violating land rights and draining peatlands. Smart said it will
review the findings and recommendations of the team and develop an
action plan to incorporate those recommendations into its standard
operating procedures.
Following the accusations last year, major palm oil consumers
such as Unilever NV (UN), Nestle SA (NESN.VX) and Burger King
stopped buying from Smart, helping to push the company toward
compliance with principles laid down by the Roundtable on
Sustainable Palm Oil, an industry body of consumers, green groups
and plantation companies that aims to promote use of sustainable
oil palm products.
GAR was admitted as a member of the RSPO in April after it
committed to sustainable palm oil production.
However, some of its customers haven't resumed purchases as they
are waiting for more concerted efforts by the company to allay
environmental and social concerns.
A social research team engaged by Smart, the manager of GAR
plantations, said this week that land acquisitions by the company
did not diminish the legal or customary rights of other users
without their free, prior and informed consent.
However, the final settlement between land owners and the
concession owners wasn't well documented, and was recorded in a
land relinquishment statement kept by the concession owners but not
provided to land owners and other parties.
The plantations, especially those in West Kalimantan, were
located in lands designated "Area for Other Uses," and did not
cover primary forest land.
However, part of the land preparation and oil palm planting was
conducted prior to high-conservation-value assessments, and to the
RSPO's requirement to identify HCV areas, so these areas weren't
clearly defined by the company, the team said.
HCV areas include areas of high bio-diversity, natural
landscapes, rare and endangered ecosystems, environmental services,
and areas to meet basic physical and cultural needs.
HCVs vital to the local community's livelihood weren't found in
the majority of the concession areas, and where found, management
and monitoring plans were already in place.
Trespassing in sacred places and burial sites was alleged to
have taken place in some of the HCVs, but all had been
reconstructed and reinstated, the team said.
-By Surabhi Choudhary, Dow Jones Newswires; +65 6415 4086;
surabhi.choudhary@dowjones.com